COMM 226 Lecture Notes - Lecture 5: Bullwhip, Outsourcing, Purchase Order
18 Jan 2017
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Document Summary
Module 5 part 1: supporting the procurement process with sap. It is an important process because it is the only one that spans the entire organization. Purchase order: written document requesting delivery of a specified quantity of a product/service. Cbi (business name example) updates raw material inventories. Finished goods: completed products waiting to be delivered to the customers. The procurement process at cbi before sap had 6 roles: Recognize that item is below reorder point. Look over previous purchases to discover a good supplier. When item is received, unpacked and counted; the inventory is updated. Lead-time: time required for a supplier to deliver an order. Invoice: also called an itemized bill, shows the amount due and the purchase order number for that invoice. The data on the invoice is entered into the accounting database. The key problem is that the warehouse manager does not have data on sales process discounts.
